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Can Pensions And IRAs Invest In The Fund?

April 26, 2017fund invest IRAs pensions

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Can Pensions And IRAs Invest In The Fund?

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Pensions and IRAs may invest in a fund. The typical practice is to restrict investments by ERISA plans, IRAs, 401(k) plans or other employee benefit plans to no more that 25% of the value of the fund. A fund which exceeds such limitation would itself become a plan asset and subject the fund s manager to the ERISA prohibited transaction rules and potential limits on the ability to charge performance compensation.